Opus issues a USD 25 million Taxable Corporate Note in the U.S.

POSTED 29 June 2017

Opus issues a USD 25 million Taxable Corporate Note in the U.S.

Opus’ subsidiary Opus Inspection, Inc. has issued a Taxable Corporate Note commonly known as Letter of Credit Backed Bond of USD 25 million in the U.S. The proceeds from the transaction will be used for refinancing of existing debt and for Opus’ continued expansion.

The Letter of Credit Backed Bond of USD 25 million, issued by Opus Inspection, carries a variable short-term taxable interest rate, which is in line with LIBOR 7 days. The Corporate Note is guaranteed through a letter of credit issued by Swedbank AB (publ), New York Branch with a maturity of three years, which is extendible, upon mutual agreement. S&P Global Ratings has assigned long-term and short-term issue credit rating of “AA-/A-1+” for the Corporate Note. The maturity under the framework of the Corporate Note is 15 years. The bonds may be prepaid by Opus, in whole or in part, without cost.

“Opus is very pleased to have placed its first Letter of Credit Backed Bond. This long-term financing instrument creates high financial flexibility to Opus at an attractive cost structure and will support our growth plan”, says Lothar Geilen, CEO of Opus.

“Opus’ current financing is in SEK while Opus’ intercompany financing is predominantly in USD, which creates an FX exposure to the Group. This USD denominated instrument will help decrease Opus’ FX exposure in USD”, says Linus Brandt, CFO and Executive Vice President of Opus. “The corporate notes are normally placed on the U.S. money market, which is significant in size with high liquidity that creates good conditions for refinancing”, says Linus Brandt further.

Opus currently has SEK 1.2 billion in outstanding corporate bonds and will continue to use the Swedish corporate bond market for future financing.

Opus is a leading vehicle inspection and vehicle services company headquartered in Sweden, with operations in Europe, North and South America and Asia.

Mölndal, June 29, 2017
Opus Group AB (publ)


For additional information, please contact:
Lothar Geilen, CEO
Tel: +46 31 748 34 00
E-mail: lothar.geilen@opusinspection.com


Peter Stenström
Investor Relations
Phone: 46 765 25 84 93
E-mail: peter.stenstrom@opus.se

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